REC’s Loan Sanctions More Than Double In Q1

REC on Friday said its loan sanctions more than doubled in the quarter ended June from the same period last year.

REC sanctioned as much as Rs 33,868 crore in loans during the April-June 2017 period, compared to Rs 15,882 crore from a year-ago period.

The power sector lender’s loan disbursements though saw a relatively modest growth of 9 per cent. The company disbursed loans worth Rs 12,785 crore during the quarter under review, compared to Rs 11,692 crore in the corresponding period last year.

Its loan book stood at Rs 2,07,802 crore while borrowings at Rs 1,68,284 crore as at the end of June.

Company’s net worth grew by 16 per cent to Rs 34,614 crore from a year-ago period.

REC’s net profit during the quarter was Rs 1,301 crore, down Rs 1,421 crore in the same period last year.

The state-owned lender has targeted to borrow as much as Rs 60,000 crore as part of fund mobilisation programme.

It plans to 90 per cent of targeted fund from domestic sources and the balance from overseas, REC chairman and managing director PV Ramesh said.

The non-banking finance company has stepped up its focus on lending to the solar sector in line with the government’s priority.

The REC is government’s nodal agency for the UDAY scheme, which has played a pivotal role in improving finances of state-owned power distribution companies (discoms, as well as for Deen Dayal Upadhyay Gram Jyoti Yojana, which is designed to strengthen distribution network in rural areas to support 24×7 electricity supply.